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A sports store puts designs 12 different designs on sweat shirts. Setup between each design takes an hour and costs $18,000. Once setup, at a cost of $8,000 they can produce 1,000 units. Does this production exhibit scale economies or scope economies? Please show the appropriate rationale modeling you use. (Need a detailed explanation, please.)
A company uses 20 work units and 30 units of capital to produce 4,000 units of product. In this combination the marginal product of labor is 50 and the marginal product of capital is 40. The price of labor is $ 30 and the price of capital is $ 20. to..
Describe various opportunity costs of attending a four-year college (assuming a full-time schedule). Given these opportunity costs, why do people choose a four-year college experience? In your own life, what are the trade-offs you face when choosing ..
Elijah and Anastasia are husband and wife who have five married children and nine minor grandchildren. For 2015, what is the maximum amount they can give to their family (including the sons- and daughters-in-law) without using any of their unified tr..
q.south korea can produce a maximum of 600 million toaster ovens or 900 million tons of rice per year. the u.s. can
q1. manipulate demand of price elasticity. suppose that 50 units of a good demanded at a cost of 1 unit. a reduction
long-run real interest rates are expected to increase. An accountant and an MBA student (who just finished his course of Managerial economics) were interviewed regarding the effect on the firm they both work at. Keeping all else constant their answer..
An individual has an income of $1000 per month with which they buy the composite good with a price of $1 and food with a price $2/unit of food. draw the budget constraint for the individual with the composite good on the y-axis and food on the x-axis..
The graph above depicts a situation where, if the market demand for the product increases, the prices of the resources used by the firms in the industry would
Compute the equilibrium quantity and price and Calculate the consumer and producer surplus.
Identify the two events that can cause a shift in the Production Possibilities curve.
If immigration raises the labour force, what is the expected effect of this on the return to labour (real wages) and capital (rental rate) according to the neoclassical theory of income distribution?
You win the lottery and are promised by the Lottery Commission $12,000 a year for 6 years, starting next year. Assume the interest rate is 9%. What is the present value of this prize?
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